PRESS RELEASE
Q4 and year-end results for the financial year 2016/17
LEM confirms leading market position and strong profitability –dividend of CHF 35 per share proposed
Fribourg, 23 May 2017 – LEM (SIX: LEHN), the market leader in providing
innovative and high quality solutions for measuring electrical parameters,announces financial year 2016/17 results (compared with financial year2015/16):• Bookings increased by 5.7% from CHF 256.5 million to CHF 271.2
million, with the book-to-bill ratio increasing to 1.03 (0.98)• Sales reached CHF 264.5 million, an increase of 1.2% (CHF 261.5million); at constant exchange rates, sales increased by 1.0%
• Gross margin improved to 46.7% (46.0%)• EBIT improved by CHF 2.9 million from CHF 52.9 million to CHF 55.8
million; the EBIT margin was at 21.1% (20.2%)• Net profit for the year reached CHF 44.6 million, an increase of 2.5%
compared to the previous year
• Cash flow from operating activities was CHF 52.8 million (+15.9%)• CAPEX increased from CHF 6.6 million to CHF 13.2 million due to thelaunch of new products and production capacity increases• Shareholders’ equity reached CHF 90.5 million, representing an equity
ratio of 60.7% (61.3% as of 31 March 2016)
Q4 of 2016/17 compared with Q4 of 2015/16:• Bookings amounted to CHF 71.2 million, an increase of 14.2%(CHF 62.3 million), the book-to-bill ratio improved to 1.07 (0.99)• Sales increased by 6.4% to CHF 66.8 million (CHF 62.7 million)• EBIT increased by 14.8% to CHF 14.1 million (CHF 12.3 million); the EBIT
margin was at 21.1% (19.6%)• Net profit for the period remained stable at CHF 11.9 million(CHF 12.0 million)“We look back at another positive year, despite the volatile business sentiment that
accompanied us throughout the reporting period. We achieved high margins while atthe same time significantly stepping up investment in future growth. During Q4 of
2016/17, we noticed improving market conditions resulting in a high level of orders
for the quarter. While business in Europe and China weakened, we recorded robust
growth in North America and the rest of Asia. We are the clear leader in the Industrybusinesses and keep a market share above 50%. In the Automotive businesses, wecontinue expanding our project pipeline: we estimate that every fifth green car
produced worldwide in 2017 will be equipped with a LEM transducer”, said François
Gabella, CEO of LEM.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30Fax.: +41 26 460 10 39
www.lem.com

Proposals to the Annual General Meeting of Shareholders
The dividend of CHF 35 (compared with CHF 35 in the previous year) that the Boardof Directors will propose to the forthcoming Annual General Meeting of Shareholders
is a sign of trust in the company’s ability to continue generating strong cash flows inthe future. The proposal follows LEM’s dividend policy of distributing significantly
more than 50% of its consolidated net profit to shareholders and corresponds to apayout ratio of 89.4%.
The Board of Directors proposes to elect Dr. iur. Werner Carl Weber as a newmember. Mr. Weber is founding partner of the law firm weber schaub & partner ag inZurich. He is Chairman and Board member of several Switzerland based privately
held companies. Mr. Weber is a representative of LEM’s largest shareholder
WEMACO Invest AG, a long-term oriented and loyal shareholder for the past 15years. His standing for election underpins the long-term commitment of LEM’s anchor
shareholder.
Industry segment: cyclical recovery of drives & welding business
Sales in the Industry segment decreased by 0.4% to CHF 214.3 million in thefinancial year 2016/17, at constant exchange rates the sales decrease was also
0.4%. LEM achieved strong orders and the book-to-bill ratio for the year resulted in1.03, pointing to an increasing momentum. China has maintained its position as themost important single country and accounted for 30% of Industry sales, but sales
development was soft there (-4%). Sales grew in North America and the rest of Asia
by 11% and 8% respectively. Sales in Europe dropped by 4%. The EBIT margin
improved to 20.5% compared with 20.0% in the previous financial year.
----

Sales in the drives & welding business increased by 10% over the previousyear. LEM achieved robust growth in all regions, yet growth was strongest inNorth America. The Company won market share in North America andEurope thanks to its products’ superior performances. LEM witnessed arecovery in demand from oil & gas producers and ongoing growth in themachine and automation industries.
The renewable energies & power supplies business is dependent of local
government decisions, which resulted in a volatile sales development. Solarequipment production continued to move from North America and Europe toChina. Hence, China has become by far the biggest solar equipment
manufacturer, now increasingly active on export markets. Wind activity was
weak in all regions. Overall sales decreased by 8%.
Sales in the traction business decreased by 10%. There was little investment
activity in new rail infrastructure during the past year. Some high-speed train
projects for export markets in China were delayed or even cancelled. Yet,LEM executed an energy meter project in Europe and won market shareglobally.
In the project-driven high-precision business, sales decreased by 10%. Someof the sales decrease should be attributed to the previous year’s strong
HVDC sales in China that did not repeat in the reporting period. LEM
achieved good sales in the Chinese and US medical markets and theJapanese test & measurement market. Overall, the Company won market
share but observed low activity globally.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Automotive segment: continued growth in green cars
Sales in the Automotive segment reached CHF 50.2 million in the financial year
2016/17, representing an increase of 8.5% on the financial year 2015/16. At constantexchange rates, sales grew by 7.5%. The segment recorded strong growth in Europeand Asia. North America is the largest region with 39% of Automotive sales. Sales in
China accounted for 29% of segment sales, while segment sales in Europe stood at8%. The strongest growth was recorded in South Korea (+69%), Japan (+23%) andGermany (+24%). EBIT reached CHF 11.8 million, up 19.1% on the financial year
2015/16. The EBIT margin was 23.5%, compared with 21.4% one year ago. The
margin increase resulted from volume growth, a favorable product mix and LEM’sefficient organization.
--Year-on-year sales in the conventional cars business decreased by 5%,
mainly driven by an anticipated technology change in LEM’s most important
market in the US.
Sales in the green cars business increased by 41%. LEM achieved strong
growth across all territories. Growth was still slower than expected due todelays of customers’ product launches and certain reductions of Government
subsidies for green cars in China. The increasing attractiveness of the market
lures new competitors such as system integrators or semiconductor suppliers
resulting in increased competition and price pressure.

Outlook
LEM sees encouraging economic signals in the most important regions and observes
increased investment activities among its customers. Thus, Management expects
positive momentum in the Industry businesses. Growth in the green cars business is
forecast to continue. Again, the Company plans a high number of product launches
and ongoing investment in production capacities for new products. The strong Swiss
franc will remain a challenge for LEM, despite the temporary easing of pressureduring the past year. Adapting the international footprint of all activities will thus
remain on the agenda.
Media and analyst conference and webcast
Andreas Hürlimann, Chairman of the Board of Directors, François Gabella, CEO, andAndrea Borla, CFO, will provide a detailed presentation of Q4 and financial year
2016/17 results today at 10:30 CEST at a media and analyst conference in Zurich.
Watch the media and analyst conference via a live video webcast. The link to thewebcast and the presentation slides are also available in the Investor Relations
section of the LEM website (www.lem.com), where the webcast will later also bearchived.
Detailed information on the financial year 2016/17 results and annual report
The full financial report is available from today, 23 May 2017, on www.lem.com>
Investor Relations>Financial Reports.

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Financial calendar
The financial year runs from 1 April to 31 March

29 June 2017
4 July 2017
6 July 2017
3 August 2017
9 November 2017
8 February 201823 May 2018
28 June 2018
3 July 2018
5 July 2018

Annual General Meeting of Shareholders for the year
2016/17
Dividend ex-date
Dividend payment date
First quarter results 2017/18
Half-year results 2017/18
Third quarter results 2017/18
Year-end results 2017/18
Annual General Meeting of Shareholders for the year
2017/18
Dividend ex-date
Dividend payment date

LEM – At the heart of power electronics
LEM is the market leader in providing innovative and high quality solutions formeasuring electrical parameters. Its core products - current and voltage transducers are used in a broad range of applications in drives & welding, renewable energies &power supplies, traction, high precision, conventional and green cars businesses.
LEM’s strategy is to exploit the intrinsic strengths of its core business, and to develop
opportunities in existing and new markets with new applications. LEM is a mid-size,
global company with approximately 1’450 employees worldwide. It has production
plants in Beijing (China), Geneva (Switzerland), Sofia (Bulgaria) and Tokyo (Japan),and a dedicated R&D Center in Lyon (France). With regional sales offices near its
customers’ locations, the Company is able to offer a seamless service around theglobe. LEM has been listed on the SIX Swiss Exchange since 1986; the company’s
ticker symbol is LEHN.
www.lem.com
For further information please contact
Andrea Borla (CFO)
Phone: +41 22 706 1250
Email: investor@lem.com

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Appendix:Key figures
In CHF millions

2015/162016/17

ChangeOrders received

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Industry segment
Automotive segment
Total LEM

50.9
10.0
60.9

52.8
13.3
66.0

53.2
14.1
67.3

50.8
11.5
62.3

52.7
12.5
65.2

53.5
13.6
67.1

55.4
12.3
67.7

58.1
13.0
71.2

Book-to-bill ratio

Q1

Q2

Q3

Q4

Q1

Q2Q3

Q4

Industry segment
Automotive segment
Total LEM

0.98
1.06
0.99

0.91
1.12
0.94

0.98
1.08
1.00

1.00
0.96
0.99

0.96
1.05
0.97

1.03
1.00
1.02

1.06
0.97
1.04

1.06
1.09
1.07

Sales

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Industry segment
Automotive segment
Total LEM

52.1
9.4
61.5

58.2
11.8
70.0

54.2
13.0
67.2

50.7
12.0
62.7

54.9
12.0
66.9

52.1
13.6
65.7

52.5
12.6
65.1

54.8
12.0
66.8

EBIT

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Industry segment
Automotive segment
Total LEM

9.2
1.4
10.5

12.1
2.3
14.4

12.5
3.3
15.8

9.3
3.0
12.3

10.6
2.8
13.4

10.4
3.7
14.1

11.4
2.7
14.1

11.5
2.6
14.1

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Q4 to
Q4+14.4%+13.4%+14.2%Q4 to
Q3+4.8%+6.5%+5.1%

Q4 to
Q4 to
Q4
Q3+5.9% +0.6%+13.6% +11.7%+7.3% +2.6%
Q4 to
Q4+8.0%
-0.2%
+6.4%

Q4 to
Q3+4.2%
-4.7%
+2.5%

Q4 to
Q4+23.8%-13.3%+14.8%

Q4 toQ3
+1.0%
-5.6%
-0.3%

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com

Consolidated income statement

April to March
In CHF thousands

2016/172015/16

Sales
Cost of goods sold
Gross margin

264 519(140 959)
123 560

261 454(141 061)
120 393

Sales expense
Administration expense
Research & development expense
Other expense
Other income
EBIT(26 700)(25 246)(16 039)(0)182
55 758(25 855)(27 323)(14 602)(6)300
52 908(228)
80(642)(361)
116987

Profit before taxes

54 96853 650

Income taxes(10 403)(10 163)

Net profit for the year

44 56643 487

Financial expense
Financial income
Foreign exchange effect

LEM Holding SA
Avenue Beauregard 1
1700 Fribourg
Switzerland

Tel. : +41 26 460 10 30
Fax.: +41 26 460 10 39
www.lem.com